Iowa Estate Plan

  Living Trust FAQ A living trust, also known as a revocable trust, revocable living trust, or inter vivos trust, is an alternative way to own property during your life and transfer property at your death.  Living trusts have been in use for many years. You can create a living trust during your lifetime by signing a legal document that directs how property transferred to the trust: (a) will be managed, (b) when and to whom the income from the trust property will be paid, and (c) to whom, when and how the trust property will be distributed when you die. A person setting up the trust is called a settlor , grantor , or trustor of the trust. The party to whom you transfer your property is called the trustee . The persons who will receive the income during your lifetime or who will receive the trust property after your death, are called the beneficiaries . You may be the settlor, a trustee, and a beneficiary, all at the same time. The property in the trust is called the trust prin...

A common issue that pops up with family members after someone dies is "do we need to go through probate?"   To answer that question, there are series of follow-up questions to be answered first.  To start the process, you should have a list of the assets in front of you and go through a "filter" process of the following questions. Question 1: Is there a named beneficiary for the assets?  Do any/all of the assets have a named beneficiary?  For example, life insurance and annuities typically have a beneficiary.  Is there a POD (Payable on Death) or TOD (Transfer on Death) beneficiary?  If the answer is "yes"  to all the assets, then you are done.  Go straight to the claims process and pass probate.  If the answer is yes to some, but not all, we move to the next question. (If the beneficiary is the "estate", then that doesn't count but doesn't necessarily mean you have to go through probate.) Question 2: Is there a surviving joint owner...

I have previously posted previously pretty much on all of these items separately, but I thought I'd commit to the "checklist-mania" and add my own checklist.  For individuals that are helping out with an aging family member, this can be a quick guide to get you started.  (If you are taking advantage of an aging family member, then you need to get a conscience and turn yourself into the authorities.) While this list can be used for pretty much anybody, young or old, this can be a helpful guide for those assisting a parent/grandparent with planning. Power of Attorney (health) - This document enables health care decisions, such as medicine, doctor, facility, therapy, etc. to be made by a selected individual.  While more than one can be named, it is typically preferred to name one responsible individual. Power of Attorney (financial) - This document provides for someone to handle financial matters.  Iowa's recently updated statute provides significant changes to th...

An alternative to having your estate go the probate process via the court system is the use of a revocable trust. Also known as a "living trust" or " inter vivos trust", this form of estate planning, if properly set up, can eliminate the need for probate. A revocable trust serves as a will substitute by specifying the terms of asset distribution upon your death. Additionally, a trustee can manage your assets during your lifetime if you become unable to do so, functioning similarly to a power of attorney. A trust may or may not be suitable for your situation. We can provide additional information and answer any questions might have about this form of estate planning.